[27 February/Radio NZ]

Synlait is investing $260 million into the development of a new milk powder factory in Waikato. The company said they were buying 28 hectares in Pokeno to build an infant base powder factory, and that they expected the first dryer to produce 40,000 tonnes a year. Synlait’s Chief Executive, John Penno, said they planned to grow their a2 Milk and Lead with Pride programmes with farmers in Waikato. He added that there was high demand for infant formula and the new factory would help to balance its reliance on a single powder manufacturing site. Mr Penno noted that they will have a national portfolio of added-value capability to leverage for future growth with the new site. The deal is subject to Overseas Investment Office approval.